Just did a 20 minute skim and here are my comments. I’m pretty green to analyzing resource estimates but I’ll throw out a couple comments below and hope any GEO’s , P.Eng.’s or more astute analysts out there can comment further:
Highlights of Magino 43-101
76k M of diamond surface diamond drilling, 60k M of underground diamond drilling used in resource estimate
0.1g/t threshold used as threshold for constraining mineralization. .35g/t cut-off.
Mineralized blocks further limited so that mineralization was not extrapolated more than 60m from drill hole and any blocks not achieving 80% of probability of achieving 0.1g/t threshold classified as barren.
Parameters for conceptual pit shell: 50 degree slope, $1.25/t mining cost, $1400/Oz Gold, 95% recovery, $7/t processing cost
All blocks below 300M, but within limit of conceptual pit shell classified as inferred. (check out slides 15 & 17 of recently updated presentation New as of 4/15/2011) – looks like strip ratio increase to significantly if pit extended to 300M (From 400M above sea level down to 100M above sea level?)
Comments
1) $1400 gold was used for conceptual pit vs. $1000 gold in PEA. Does this not seem standard practice?
2) There were no plane-diagrams of drill holes, conceptual pit shell, blocks, and inferred vs. indicated blocks contained in the 43-101. Likewise, there was no discussion of parameters of pit shells so an investor could speculate is sub 300M inferred resources could be upgraded to indicated with in-fill drilling. I don’t know why they wouldn’t include this so less astute, non-geo investors could actually physically see the property. A picture says a thousand words so I’m wondering why no diagram. If you look on slides 15 and 17 of recently updated presentation on website they just released a couple basic diagrams. Looks like conceptual pit shell is 200M deep. Comments welcome.
3) BLM Bharti Engineering was involved in property in 1996. Just wondering if anyone could comment is this was Stan Bharti’s (of Manhattan and Forbes group) company and if so, why they wouldn’t be involved in this property.
Andre (Long)